The Central Bank of Nigeria (CBN) has issued a directive requiring all banks, mobile money operators, international money transfer operators and other financial institutions to implement automated anti-money laundering (AML) solutions.
The move is aimed at strengthening the detection and reporting of suspicious financial transactions and enhancing compliance with laws on money laundering, terrorism financing and proliferation financing.
The new baseline standards, announced in a circular this March 2026, provide a framework for financial institutions to adopt automated systems capable of real-time monitoring of transactions. According to the CBN, the guidelines also encourage the use of emerging technologies to improve overall financial crime risk management
Under the directive, deposit money banks are expected to fully comply within 18 months, while other financial institutions have up to 24 months. Institutions are required to submit their implementation roadmaps to the CBN’s Compliance Department within three months from the date of issuance.
“The CBN remains committed to promoting financial system stability and integrity. All stakeholders are required to ensure strict compliance with these guidelines and other existing regulations, as the bank continues to monitor developments and issue further guidance as necessary,” the circular stated.
Industry experts say the automation of AML processes is expected to improve efficiency in detecting illicit financial activities and reduce the risk of regulatory breaches, which could have serious legal and financial consequences for institutions.
Credit: The Sun